Form 4: Relay Therapeutics Executive Sells Shares to Cover Tax Obligations and Under 10b5-1 Plan
SEC Form 4 Filing
A Relay Therapeutics executive sold shares to cover tax obligations from vested stock units and under a pre-arranged 10b5-1 trading plan.
Summary
- Peter Rahmer, Chief Corporate Development Officer at Relay Therapeutics, sold a total of 80,909 shares of common stock across three transactions.
- The first sale of 32,156 shares on January 2, 2025, was to cover income tax withholding obligations from the vesting of restricted stock units (RSUs).
- The remaining sales of 32,177 shares on January 3, 2025, and 16,576 shares on January 6, 2025, were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 22, 2024.
- The sale prices ranged from $4.15 to $4.48 per share, with weighted average prices of $4.15, $4.30 and $4.45 for the respective transactions.
- Following these transactions, Rahmer beneficially owns 308,754 shares, including 289,538 shares underlying RSUs.
Sentiment
Score: 5
Explanation: The document reflects routine executive stock sales, which are neither particularly positive nor negative. The sales were partly for tax obligations and partly under a pre-arranged trading plan, which is a common practice.
Risks
- Executive stock sales can sometimes be perceived negatively by the market, although these sales were partly for tax obligations and under a pre-arranged trading plan.
Industry Context
Executive stock sales are a common occurrence, especially around vesting periods and under pre-arranged trading plans. This filing is a routine disclosure of such activity.
Comparison to Industry Standards
- The use of 10b5-1 trading plans is a standard practice for corporate executives to avoid accusations of insider trading.
- The sale of shares to cover tax obligations upon vesting of RSUs is also a common practice.
- The reported prices are within the typical range for stock transactions of this nature.
Stakeholder Impact
- The stock sales may have a minor impact on the share price, but the transactions were not unexpected given the tax obligations and pre-arranged trading plan.
Key Dates
| Date | Description |
|---|---|
| 2024-02-22 | Date the Rule 10b5-1 trading plan was adopted by the reporting person. |
| 2024-12-31 | Date of vesting of 80,909 shares of restricted stock units. |
| 2025-01-02 | Date of first stock sale to cover tax obligations. |
| 2025-01-03 | Date of second stock sale under the 10b5-1 plan. |
| 2025-01-06 | Date of third stock sale under the 10b5-1 plan. |
Keywords
Relay Therapeutics, RLAY, Peter Rahmer, stock sale, Form 4, insider trading, Rule 10b5-1, restricted stock units, RSUs, executive compensation
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